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Prepare accounting records to show the effect of the information provided on the balances at 30th Nov. 2018, as shown in the trial balance. The
Prepare accounting records to show the effect of the information provided on the balances at 30th Nov. 2018, as shown in the trial balance.
The following information is taken from the accounting records of Harvard Froots Limited at 30th November 2018. Harvard Froots Limited is a company which imports fresh fruit and vegetables from around the globe and sells them to independent grocers across the UK. Trial Balance Dr '000 Cr '000 150,000 83,000 203,000 40,000 600,000 360,000 72,100 56,000 Equity shares of 1 each Retained earnings as at 1 December 2017 Inventory Purchases for the year to 30 November 2018 Bank loan @ 4% Interest Warehouse property cost Accumulated depreciation on warehouse property at 1 December 2017 Motor vehicles cost Accumulated depreciation on motor vehicles at 1 December 2017 Fixed asset purchases for the year to 30 November 2018 Trade and other receivables Cash Trade and other payables Inventory at 1 December 2017 Tax expense for the year to 30 November 2018 Revenue for the year to 30 November 2018 Operating expenses for the year to 30 November 2018 28,000 41,000 29,300 27,000 700 304,500 51,000 1,022,800 1,022,800 In addition, the following information is provided regarding matters which are not reflected in the above figures: (i) On 31 October 2018, they made a payment in cash of 24,000 for one years' rental on their head office. (ii) One of the two distribution warehouses was disposed of on 1 December 2017. It cost 200,000 in 1985 and had been depreciated on a straight line basis, over 30 years. The proceeds of the sale were 350,000. (iii) Depreciation has not yet been accounted for. Motor vehicles are charged on a reducing balance basis at 40%. The remaining warehouse property was bought for 400,000 and is charged on a straight line basis over 30 years, with a 100,000 scrap value. (iv) The closing inventory balance is 25,000 and costs of sales is calculated on a periodic basis. (v) One of Harvard Froot's customers has gone bankrupt. Harvard Froot are unlikely to be able to recover the 5,000 owed to them and need to make a bad debt provision for this amount. (vi) The interest on the loan has not yet been accounted for or paidStep by Step Solution
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